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Home Affordable Foreclosure Alternatives (HAFA) Program, Explained

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By : Roby Hicks    99 or more times read
Foreclosure has brought about problems not only to the homeowners losing their home but also to the real estate market and the economy. To help reduce the burden dealt by the homeowners, government has developed programs to assist them. There is the HAMP or the Home Affordable Modification Program. This aims to make the mortgage more affordable. But even with these efforts, homeowners are still losing their properties. This brought about the HAFA or the Home Affordable Foreclosure Alternative that took effect in April 2010.

HAFA is for those who have qualified for HAMP but were still unable to keep their homes. This is specifically helpful for short sale and deed in lieu of foreclosure.

Who is eligible for HAFA?

Not everyone is eligible for this program, this is for those who qualified for HAMP who will still lose their property. Most of the information used for the modification will be considered in HAFA. This includes the letter of hardship, which details the reason for your financial woes. Information about your mortgage, the property involved and your income will also be considered.

One of the things you need to keep in mind is that your mortgage has to be first lien originating on or before January 1, 2009. This will not be applicable on secondary mortgage. You also have to bear in mind that the property has to be your primary residence. It can be vacant for a certain period, but you have to establish that it is your primary residence. There are also certain conditions as to the principal balance of the mortgage. This varies depending on the kind of property you have. If you have a single family home, the principal balance should not exceed $729,750. The amount is different for dual unit properties and for other types of homes.

Another important thing you need to keep in mind is the monthly payment you are making. It should at least 31% of your monthly income. The monthly mortgage considered here is the entire amount paid for the mortgage, interest, taxes, insurance and the like.

How can this help the homeowners?

You are probably wondering how this helps if the owners will lose the property anyway. Well, it helps in during short sale because HAFA requires that the lender replies within ten days after an offer is made. Although this is the case, you cannot be assured that the lender will approve it. This way, you can proceed with your next options or create a new strategy.

Another benefit of HAFA is that you will not be obliged to pay the deficiency between the mortgage balance and the selling value of your property. This is a great relief. Aside from that, you will also be given financial aid for relocation.

HAFA truly befits those who are in the verge of losing their home. However, there are certain limitations and drawbacks. Again, only those who qualified for HAMP are eligible. These homeowners should be losing their homes eventually as well. If you have applied for HAMP before and you feel like you will still be losing your home, check with your agent, you might be eligible for HAFA.
Check out the Turtle Creek Estates Dallas Real Estate. Visit the Affordable Housing in Arlington and Million Dollar Homes in Carrollton too.

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